The City’s Office of Innovation and Economic Development is hosting a webinar at noon on Wednesday, Jan. 5 to discuss the state’s new homeless hiring tax credit and to provide an opportunity for businesses, certifying homeless services organizations, and workforce referral agencies to connect.
“The state’s new tax credit can help employers reduce their tax liability while creating meaningful employment opportunities for qualified homeless individuals,” said the City’s Housing Policy Manager Danielle Foster. “We encourage all employers to learn how to participate at our upcoming webinar.”
California’s governor signed Assembly Bill 150 this year establishing the Homeless Hiring Tax Credit (HHTC). The credit is available for taxable years beginning Jan. 1, 2022 through Dec. 31, 2026.
Reservations for tax credits are expected to begin Jan. 3 at the State Franchise Tax Board website. Credits are available on a first-come, first-served basis until they are all reserved.
Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.
For qualified employees to hire, please contact the Sacramento Employment and Training Agency (SETA) at EmployerServices@SETA.net or (877) 920-JOBS. You may also contact local non-profit agencies with training programs, like Saint John’s Program for Real Change, Women’s Empowerment and/or Volunteers of America.
To be eligible, the employer:
- Must obtain the required certification, demonstrating the employee is homeless (currently or within the last 180 days) or receiving homeless services by a certifying organization.
- Make a tentative credit reservation with the State Franchise Tax Board to claim the credit. Employers can make reservations starting Jan. 3 until all available credits are reserved. Reservations must be completed within 30 days of filing the New Hire reporting requirement with the State Employment Development Department.
- Claim the tax credit when they file their tax return.
A total of $30 million of credit is available annually and employers can roll unused credits into future tax years for up to three years. Learn more and register for the upcoming webinar on the City’s website.